Tradewinds’ 9-month pre-tax profit falls to RM384.8m
KUALA LUMPUR, Nov 27 – Tradewinds (M) Bhd reported a lower profit before tax of RM384.78 million for the nine months ended Sept 30, 2012 from RM673.24 milllion in the same period a year ago, due to the drop in the performance of its plantation and rice divisions.
Revenue was higher at RM6.23 billion from RM4.73 billion previously, the company said in a filing to Bursa Malaysia.
It said the profitability of the plantation business segment was very much determined by the price movements of oil palm products.
Crude palm oil prices had experienced a decline since August 2012 and plunged to a three-year low at below RM2,200 per metric tonne (MT) in early October 2012, it said.
The sharp decline in prices was mainly due to weaker demand as a result of slower global economic growth and concerns over Malaysia’s rising palm oil stock, which rose to a record high of 2.48 million MT in September 2012.
For the rice division, it achieved higher revenue due to the higher volume of rice sold but its pre-tax profit was lower, which was largely attributed to the high cost of imported rice.
The current global economic conditions continued to be challenging for the rubber division with the natural rubber prices under pressure in the short term due to subdued demand and decline in production by rubber producing countries.
Tradewinds said the division will continue with its cautious approach to mitigate any negative economic effects through better raw materials purchase control and introducing control mechanism to protect its margins during price volatility. – Bernama